Scatec Solar ASA NERSA Public Hearing Jan Fourie Sirius ... · • Generating margins through all project stages while establishing premium assets with strong and predictable long-term

Copyright: Scatec Solar ASAwww.scatecsolar.com • [email protected]

NERSA Public HearingSirius Solar PV Project One (Pty) Ltd

September 2015

Scatec Solar ASA Presented by Jan Fourie

Business Development Manager


Project Company-General Information• Sirius Solar PV Project One (Pty) Ltd• Registration Number: 2012/113733/07• IPPID: RE_PV_0006_008• Preferred Bidder in Round 4 of the Renewable Energy Independent Power Producer

Procurement Program (REIPPPP)• Located 15km South West of Upington

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Content

• Company Background• Our Track Record• The Project• Permits and Regulatory Approvals• Technical Information• Financial Information• Socio Economic Development and Value for Money• Stakeholder Engagement• Timelines to COD• Questions

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What our partners and customers can expect from us:

driving results working togetherpredictable changemakers working togetherchangemakers

Scatec Solar – vision and mission

Our motivation to succeed and create value for our customers, employees and shareholders:

Vision: Scatec Solar - improving our future

Mission: To deliver competitive and sustainable solar energy globally, to protect our environment and to improve quality of life through innovative integration of reliable technology

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An Independent Solar Power Producer

Established: 2001Headquarter: OsloMain shareholders: Scatec* 62.5 %,

Itochu 37.5 %Employees: 88

Power plants (ownership)

Key financial highlightsSecured revenue backlog of more than NOK 15bn

Key factsKey facts

Established: 2001Headquarter: Oslo

Main shareholders: Scatec 29.2% Itochu 18.9%

Employees: 100

Power plants (ownership)

Czech Republic (100%): 20 MWKalkbult, RSA (39%): 75 MWLinde, RSA (39%): 40 MWDreunberg RSA (39%): 75 MWASYV, Rwanda (57%) 9 MW

Experienced and fast-growing• Project track record of close to 600 MW• 219 MW of solar power plants in operation • 207 MW under construction

Integrated across the downstream value chain• Generating margins through all project stages while establishing

premium assets with strong and predictable long-term cash flows• Focus on asset management with the goal of maximizing long term

shareholder values

Strong backlog and pipeline• Secured PPAs for 266 MW (South Africa and Hawaii)• Project pipeline of 468 MW (Americas, Africa, MENA)• Project opportunities of 1.7 GW

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The Scatec Solar business process and value chain

PV equipment manufacturing

• Chemical processing & assembly

• Rapid technology development

• Cost reductions

Scatec Solar

Project development Financing Construction Operations IPP

• Power Production

• Asset management

• Financial and operational optimization

• Maximize performance and availability

• Maintenance and repair

• Project management

• Supplier and construction monitoring

• Quality assurance

• Funding and cash flow management

• Detailed design & engineering

• Component tendering

• Debt / Equity structuring

• Due Diligence

• Site development

• System design• Business case • Permitting• Grid connection• PPA negotiation

/ tender / FiTsecured

Parts of the construction phase is outsourced to EPC sub-contractors

Development & Construction Operation & Maintenance Power Production

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Key success factors in emerging markets

Technical• Engineering and design• Component technology

Financial• Debt and equity structuring• Working capital management

Local/regional power market insights• Solar impact on the power markets• Grid interconnection• Government relations

Construction management• Component sourcing• Cost and progress management

Commercial/legal• Power Purchase agreements• Contract/SPV structuring• Tax optimisation

Operational• Plant optimisation• Maintenance

Scatec Solar is leveraging multi-functional teams and strong partnerships

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Norfund & IFC partnerships

Norfund partnership: • Project development and investment partnerships in

various regions (70% Scatec Solar / 30% Norfund)• Norfund co-investing in South Africa, Rwanda and

HondurasIFC partnership: • Development and financing partner in selected

countries in West Africa

Key benefits:• Access to lower cost of capital• Expanded network for project origination• Risk mitigation – representing the Norwegian

government and the World Bank

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On track to deliver on our targets

• Target to own gross 750 MW by end of 2016 • 219 MW in operation• 207 MW under construction• 266 MW in project backlog• 468 MW in project pipeline • 1,700 MW additional opportunities

• Annual cash flow to SSO equity of NOK 140-160 million from the 219 MW producing capacity (PP and O&M segments)


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Headquarter OsloRegional Offices

Cape TownSan Francisco

Operational AssetsCzech Republic 20 MWKalkbult, RSA 75 MWLinde, RSA 40 MWDreunberg, RSA 75 MWASYV, Rwanda 9 MW

Assets Under ConstructionJordan 43 MWRed Hills, Utah 104 MWHonduras 60 MW

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Scatec Solar – a global presence

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South Africa – a break through for Scatec Solar Kalkbult, RSA

Capacity 75 MW

Annual production 150,000 MWh

Linde, RSA

Capacity 40 MW


Dreunberg, RSA

Capacity 75 MW


Solar power plants that started production in 2013 and 2014


Renewables IPP program in SA - a success story

• Government plan launched in 2010: Target 17 GW of Renewables by 2030, of which 8.4 GW is solar

• South Africa has procured 1.9 GW solar PV under the Renewable Energy IPP Program since 2010

• Expansion of program announced in April 2015

• New round of bidding for 1.8 GW later this year with expected PV allocation of about 700 MW

• A new allocation of 6.3 GW for the REIPPP program has been announced - implying annual allocations of 1-2 GW / year until 2020

13Source: REIPPP project office, http://www.ipprenewables.co.za


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Project Structure

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Norwegian HoldCoScatec Solar SA 310 (Pty) Ltd

Project Company

Scatec Solar AS

Trust HoldCoScatec Solar SA 325 (Pty) Ltd

40%60%

70%

Norfund

30%

Scatec Solar Upington Local Community Trust*

100%

DebtTier 1 Lender


Project Location• Sirius Solar PV Project One is to be constructed on the Farm Tungsten Lodge, Number 638

approximately 15 km south west of Upington, over an area of approximately 250 hectares.• The farm is adjacent to both the project area designated for the Eskom CSP Project (which

includes the 400/132kV Upington MTS) and the Abengoa !Khi Solar CSP plant

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Content


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Permits and Regulatory Approvals

Permit/Authorization or Regulatory Approval Status

Land Lease Option Signed and In PlaceEnvironmental Authorisation ReceivedHeritage Approval ReceivedSouth African Civil Aviation Authority Approval ReceivedSubdivision of Agricultural Land Act (Act 70 of 1970) ReceivedSection 53 Mineral Rights Consent ReceivedLand Rezoning ReceivedSANRAL Site Access Approval Received

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The WULA pre-consultation meeting with the DWS was had on the 12th of June 2015. TheDWS commented that they believe there should be sufficient ground water to provide for allthe water needs of the project for both the construction and operational phases.Geo-hydrological and fresh water ecological studies have recently been completed. These specialist studies will form the basis for the WULA which is on track to be submitted to the DWS on the 9th of October 2015.


Content• Company Background• Our Track Record• The Project• Permits and Regulatory Approvals• Technical Information• Financial Information• Socio Economic Development and Value for Money• Stakeholder Engagement• Timelines to COD• Questions

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Technical Details

• Energy yield assessment carried out in-house and independently verified, indicating high resource availability

• All equipment is IEC Certified

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Contracted Capacity: 75 MWPV Module Type: BYD 310 P6C-3 (Polycrystalline)Number of PV Modules: 277.500 modulesMounting Type (fixed, single axis tracking or double axis tracking): Horizontal Single Axis tracker system

PV inverter: SMA - Sunny Central 2200Number of inverters: 37Planned voltage connection level: 132 kV

Planned connection point (i.e. the name of the substation or distribution line onto which the Project is intended to connect):

Connection to an on-Site Switching Station to connect to the Upington MTS


Layout

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Grid Connection Will be via an on-site Sirius Switching Station connecting directly to Upington MTS



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Financial Information• Equity Structure

• 42% Scatec Solar• 40% Community Trust• 18% Norfund

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Capital Expenditures %Construction and Site Costs 82%Transactions and Soft Costs 4%Finance Costs 14%

Opex Costs %Site Costs 7%Consultants and Development 23%Operations and Maintenance 59%Services 11%



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Socio Economic Development

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Value for Money• A high quality project delivering a significant and predictable quantity of renewable PV

power, • Capable investors and partners and high quality components leading to low risk of failure to

deliver on the commitments of the bid.• An attractive Fully Indexed Tariff, achieved by continuously seeking cost improvements in all

areas• Promoting local industry development where possible without compromising on quality.• A Lead Member with a general long term commitment to developing and transferring global

experience to the South African PV industry • An ED commitment at or above target on all of the 17 categories where target levels have

been communicated.• Low FX Exposure relative to DOE Requirements

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Skills Development

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Stakeholder Engagement• No objections against the project were received during the EIA process undertaken.

Savannah Environmental and the project developer responded appropriately to all comments and/or queries received during the process.

• No appeals against the project were received during the appeals period following the issuing of the Authorisation (see attached confirmation from DEA). As no objections were raised against the project, it is unlikely that any late appeals will be lodged against the granting of the EA.

• Department of Environmental Affairs confirmed the above on 06 August 2014• 24 Comments Received During The Scoping Phase – Mar –Dec 2013 • 12 Comments Received During The Eia Phase – February 2014

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Commercial Operation Date

•April 2018

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Consultation & Engagement Lenders May 2015 till FCExpected Financial Close Dec-15Construction Program FC to March 2018 (27 months)Operations COD + 20 years


Thank you

Questions?

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Scatec Solar ASA NERSA Public Hearing Jan Fourie Sirius ... · • Generating margins through all project stages while establishing premium assets with strong and predictable long-term